Published: 16/12/11
Business health warning: check your sums insured
The summer riots provided a stark warning to businesses and politicians alike, albeit for different reasons.
Following the riots, one of the main things reported by many, many insurers was the fact that just as they kicked off, policy holders quickly contacted them, frantically increasing sums insured on stock and other areas. This suggests that people knew or suspected that they were actually underinsured.
And whilst you probably think we might bang on about this a little bit too much, it really is our job to make sure that you and your business are properly covered.
The key message from Flint is: check your sums insured.
Every business is different and you know better than anyone the specific and particular challenges you would face if disaster struck.
In case of the riots, property damage was crucial, so you would need to ensure that any property is insured for the full cost of rebuilding and not just the market value; rebuilding is often less than market value, but you also need to take into account:
- Cost of debris removal
- Fees for lawyers, surveyors, architects and consulting engineers
- Walls, gates, fences and outbuildings
- Drives, car parks, swimming pools
- Interior decoration
- contents
Then there’s:
- Loss of revenue, loss of gross profit or increased cost of working.
- Loss of stock or stock deterioration
- Specialist Vehicles: if your company requires specialist vehicles you might need to take into account temporary hire charges in addition to replacement costs.
- Business Equipment: if you use specialist equipment not readily available, then you must take this into account, it might also include machinery movement, installation or erection.
Insurance is there to protect you, but if the unthinkable happens and you are not completely covered it just doesn’t work. And all the hard graft you put into your business is dependent on being able to continue to trade.
We are here to help you get the most out of your insurance; every step of the way.
Contact Dawn Charlesworth on 0845 371 1450 or email dawncharlesworth@flintinsurance.co.uk
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